KANSAS CITY, Mo., April 28, 2011 /PRNewswire/ -- DST Systems, Inc. (NYSE: DST) has signed a definitive agreement to acquire, through a newly formed subsidiary, the assets of Finix Business Strategies, LLC, a financial services consulting firm with extensive brokerage and technology expertise. A DST subsidiary will also acquire the assets of Finix Converge, a technology firm that develops and distributes an enterprise social networking and media platform to enable firms to connect and collaborate with their constituents more effectively online. The transaction is expected to close on April 29, 2011. The terms of the agreement were not disclosed.
In connection with this acquisition, DST has created DST Brokerage Solutions, a technology service company committed to fundamentally impacting the way the brokerage market conducts business. By combining Finix Business Strategies' extensive knowledge and brokerage expertise with DST Systems' breadth and depth of technology and services, DST will address broker-dealers' unique challenges through an expanded suite of products and solutions. This move further emphasizes DST's commitment to the brokerage marketplace and reinforces the strategic position of DST's subaccounting business.
Mike Abbaei, managing partner of Finix, will head the new organization as president, reporting directly to Stephen C. Hooley, president and chief operating officer of DST Systems. Abbaei is a recognized thought leader in the asset management and brokerage industry. Prior to Finix, he served as an executive vice president and chief information and operations officer at Legg Mason, where he supported the broker-dealer operations of more than 140 branches as well as the company's main headquarters and its asset management affiliates. In his new role at DST Brokerage Solutions, Abbaei will lead the vision and development of integrated products, services and solutions tailor-made for the broker-dealer market.
"Under Mike Abbaei's leadership, our expanded offering of specialized resources represents a strengthening of the existing DST TASS subaccounting organization, a continued commitment to servicing broker-dealers, and an investment in a broader suite of integrated offerings for this market segment," said Hooley.
"Our vision is to provide seamless integration between the applications broker-dealers need to conduct their businesses and to create efficient connectivity between all parties throughout the lifecycle of a financial product," said Abbaei. "I am excited about working with the DST team to deliver integrated solutions designed specifically for the broker-dealer market."
Joining Abbaei from the Finix leadership team is Stuart Bowers, who will serve as chief operating officer of DST Brokerage Solutions. Bowers is known as an industry leader in both brokerage and mutual fund operations. Prior to Finix, Bowers was a managing director at Legg Mason, and has served on numerous committees for the Investment Company Institute (ICI), the Securities Industry and Financial Markets Association (SIFMA), Financial Industry Regulatory Authority (FINRA) and Depository Trust & Clearing Corporation (DTCC). In his new role, Bowers will apply his extensive brokerage operations expertise and management oversight toward the successful delivery and implementation of DST Brokerage Solutions' subaccounting services and solutions.
Mike Duffy, a 37-year industry veteran who has led DST TASS since 2008, will continue in his role and will report to Stuart Bowers. Prior to joining DST, Duffy held leadership positions with Piper Jaffray, acting as chief information officer, director of operations and a member of the management committee.
DST Brokerage Solutions will deliver an expanded suite of solutions designed to fit the needs of broker-dealers, enabling fully integrated, seamless communications between fellow broker-dealer desktops, back offices and asset management platforms. The following solutions will be available through DST Brokerage Solutions:
- Business Strategy, Technology, and Operations Consulting
- Brokerage Subaccounting
- Business Process Management and Workflow
- Broker/Advisor Portal
- Portfolio Aggregation, Management, and Reporting for Advisors
- Print and Electronic Customer Communications and Output
- Enterprise Social Networking Platform
As part of DST Brokerage Solutions, Finix Business Strategies' existing buy- and sell-side advisory services will now be delivered through a newly formed DST entity, Finix Professional Services, and Finix Converge's flagship social networking efforts will continue to expand under a newly formed DST entity, Converge Systems.
DST Systems, Inc. provides sophisticated information processing and computer software products and services to support the mutual fund, investment management, insurance and healthcare industries. In addition to technology products and services, DST provides integrated print and electronic statement and billing output solutions through a wholly owned subsidiary. DST's world-class data centers provide technology infrastructure support for mutual fund companies, healthcare providers, banks, mortgage bankers and insurance companies around the globe. DST is headquartered in Kansas City, Mo., and is a publicly traded company on the New York Stock Exchange.
The information and comments above may include forward-looking statements respecting DST and its businesses. Such information and comments are based on DST's views as of today, and actual actions or results could differ. There could be a number of factors affecting future actions or results, including those set forth in DST's latest periodic financial report (Form 10-K or 10-Q) filed with the Securities and Exchange Commission. All such factors should be considered in evaluating any forward-looking comment. The Company will not update any forward-looking statements in this press release to reflect future events.
SOURCE DST Systems, Inc.